Mike Hughes, Vice- President of Downing-Frye Realty, Inc. has released the company newsletter for November. I’d like to share this update with you below.
WEATHERING THE STORM ON A SEA OF UNCERTAINTY:
The housing market is in the early stages of recovery, according to Lawrence Yun, chief economist for the National Association of Realtors® (America’s largest trade association with 1.1 million members). “A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions,” he said.
Total housing inventory at the end of September fell 1.9 percent to 4.04 million existing homes available for sale, which represents a 10.7-month supply at the current sales pace, down from a 12.0-month supply in August. Raw unsold inventory is 11.7 percent below the record of 4.58 million in July 2008.
“Vacant homes and homes where mortgages have not been paid for an extended number of months need to be cleared from the market as quickly as possible, with a new set of buyers helping the recovery along a healthy path,” Yun said. “Inventory remains elevated and continues to favor buyers over sellers.
For properties priced under $300,000, the median closed sales price decreased by 3 percent in the third quarter 2010 compared to the previous year. Closed sales from $300,000 to $2 Million increased by an average of $48,000 each.
For the twelve months ending September 2010, overall closed sales of single family homes increased by 19 percent and condos by 45 percent compared to the previous twelve months.
The inventory of available homes and condos in September 2010 was 8,794 units compared to 9,209 units in September 2009, a decrease of five percent
Continuing the trend from the previous month, the under $300,000 market captured 75 percent of the closed sales during September 2010. The Bonita Springs–Estero Association of Realtors® reported 121 overall closed sales and only 30 of those were $300,000 or over. There continues to be a steady number of luxury properties ($1 million+) sold with the top five sales reported in The Brooks, Bonita Bay, Grandezza and Pelican Landing.
The number of single-family homes and condos coming on the market in September 2010 increased by 14 percent from the previous month, while closed sales of condos decreased by eight percent and single family closed sales decreased by 16 percent.
INTEREST RATES REMAIN LOW
In September, the interest rate for a 30-year fixed-rate mortgage averaged 4.35 percent, significantly lower than the 5.06 percent average during the same month a year earlier, according to Freddie Mac.
DOWNING-FRYE REALTY, INC. ON TRACK
Closings were down this September compared to the same time last year,” said Mike Hughes, Vice- President of Downing-Frye Realty, Inc. “Keep in mind that last year in the second half of the year, we saw our closings go up quite a bit. Part of this was due to the first time home buyer credit. Anyway, we are still on pace to exceed $1 billion in closed sales volume for 2010.”
Is owning a slice of paradise in your bucket list? How old do you think you have to be to enjoy your own digs in Naples, Florida? Many people toy with the idea and waver for so long, dragging their feet, analyzing, reviewing, waiting for the “perfect opportunity” that they either wait too long and buy at the top of the market, reducing their chance for a higher return on their investment, or, simply give up after market values have soared and their dream home now belongs to someone else that moved quicker. Don’t fall into these camps. There’s just no better time to purchase real estate in Naples, whether you’re an American setting yourself up for retirement or an international buyer looking for a safe investment outside of your home land, now is the time to buy. Yes, there is urgency because our inventory is depleting, and everyone knows when there’s less supply and demand continues in an upward bend it can only mean higher prices and greater profits for sellers. We’re seeing many, many communities in town that only have three or four listings in a community where normally, there should be at least 10% available. It has been reported, specifically at our company Downing-Frye Realty, that even back in January and February, there were multiple offers coming in on properties that experienced this reoccurrence that we haven’t seen since 2003-2005. Interest rates: they’re at a historical low and there’s talk on the street that it may be going a bit lower. For American citizens, it’s the optimum time to move combining great interest rates and reduced inventory, we know all too well what this can mean for future values. Naples was in my bucket list since I first made the trip in 1984 and we worked towards it, waited for the kids to be on their own and finally realized our bucket dream in 1997, one day after Rick’s son got married, and we’ve never looked back. Other items that I’ve “ticked off my list” that I’ve enjoyed such as parasailing, zip lining, hot air ballooning, gliding, trapeze flying only gave me a momentary rush and soon afterward, the memory was tucked safely in the back of my mind. However, living in a beautiful seaside community, watching the wildlife outside my window and enjoying Naples in every way possible makes all the others pale in comparison. Please, come visit Naples, we have your cabana waiting for you. Don’t wait. For further information or any questions on Naples real estate please contact Ruth Bethem at Ruth@RuthBethem.com or direct at 239-777-7007 or toll free 877-777-7545.
The monthly newsletter for Downing-Frye Realty has been released. Here is the report from our General Manager and Vice-President Mike Hughes:
In comparing July 2010 with July 2009, pending sales in the Naples beach area increased by 13 percent while the available inventory decreased by 7 percent. At the same time, the Naples beach area median closed sales price for single-family homes increased to $1,117,000 as compared to a median of $500,000 in July 2009. All statistics point to a steady recovery of the Naples real estate market.
The overall median closed price for properties over $300,000 increased in July 2010 compared to the same month last year.
According to Mike Hughes, General Manager and Vice-President of Downing-Frye Realty, Inc., “The overall medium sales price of properties priced over $300,000 has been steadily increasing for several months. In December 2009 the median was $505,000, in March 2010 it was $549,000 and in May 2010 it was $585,000. In July of 2010 it went up to $592,000.”
Pending sales in the $1 million to $2 million property market increased by 82 percent during July 2010 compared to July 2009, and overall pending sales increased by 15 percent.
“As of mid-August, Downing-Frye Realty, Inc. has closed over 2,000 transactional sides for the year. That’s incredible,” said Hughes. “In a tough economy, we continue to see promising results.”
If you need more information on the real estate market here in Naples, Florida, please don’t hesitate to call me directly toll-free at 877-777-7545 or search for properties for sale in Naples on my website www.RuthBethem.com.